The time has come. You need to walk into your boss's office,
throw down your resignation letter and tell him, "Take this
job and sho"--well, maybe don't go that far. Former bosses
can make wonderful first clients. Nevertheless, 2002 is
going to be your year, the year when you realize you've waited
long enough to start your dream business and you actually go out
and do something about it.

We'll help you with your first step--finding the perfect
business idea. This year, service businesses are reigning over our
list of the 10 hottest business ideas for 2002. From computer
consulting and referral services to personal training and financial
planning, busy folks are still hankering after people who can make
their lives easier and make their businesses run smoother. But for
those who'd rather sell a product than a service, don't
worry--we've got you covered as well.

Consulting Service

Consulting is one of those businesses that most people
aren't too familiar with. They know the term, but really, what
do consultants do all day long? What do you consult about?
We'll clear up the confusion: According to
Merriam-Webster's Collegiate Dictionary, a consultant is
one who gives professional advice or services, an expert. It's
one more thing, too, according to us: a damn good industry to get
in on.

"Consultants offer a fresh, objective point of view when an
organization is looking for answers to questions it never had in
the past," says Elaine Biech, author of The Business of Consulting. And this is
a particularly salient point right now with a recession lingering
and layoffs occurring in all industries. "Layoffs don't
signal less work for consultants," says Biech. "In fact,
it's often just the opposite. The employees go away, but the
work may not. Consultants can provide temporary people-power to
complete projects that still remain."

To get a start in consulting, you will need solid experience and
expertise. John Hrastar began his McLean, Virginia, consulting
firm, InterSource, after building a $25 million business. "My
expertise comes from being a real-world, serial entrepreneur,
having an interest in a wide variety of industries, an
understanding of the underlying processes that drive business
growth, and the ability to quickly learn, distill and communicate a
situation when working with a client," say Hrastar, who offers
CEO advisory services; interim CEO services, where he becomes the
CEO of a company for a brief period of time; and CEO roundtable
discussion moderation.

"The key is to determine where your brilliance lies and
then offer it to clients," advises Biech. "Do a thorough
self-assessment: Explore your experiences, inventory your
competencies and assess your consulting aptitude." Also, talk
to other practicing consultants to get a feel for the business, the
day-to-day operations and the challenges. "The third step is
to determine how much money you'll need to make and begin to
establish your business plan," says Biech.

Startup costs for consulting practices are minimal: A desk,
computer equipment and high-quality marketing materials. "You
can get by with few expenses to start a consulting business,"
says Biech. "However, don't cut costs on your marketing
supplies. Do not shortchange your image."

Next Step

Here are some resources to get you started in your consulting
research:

Financial Planning

A head for numbers and the stomach for the tumults of running
your own business--if you can pass this anatomy test, then you
might be up for what the Jobs Rated Almanac 2001 calls the
best job in the country: financial planning.

This field is steadily growing: The number of certified
financial planners (a designation regulated by the CFP Board of
Standards) has risen from 31,900 in 1997 to 37,101 in 2001. The
number of CFP Board Registered Education Programs has more than
doubled since 1996, from 87 to 213.

"Financial planning is a professional practice that
involves specialized knowledge in the areas of cash management,
risk management, tax planning, retirement planning, investment
planning and estate planning--and most important, an awareness of
the interconnectedness of all these areas," says David B.
Yeske, CFP and national president-elect of the Financial Planning
Association.

Financial planners almost always have a financial industry
background, whether CPA, stock broker or even tax attorney.
"From there, you must add specialized knowledge about
financial planning, with a goal toward becoming a certified
financial planner," says Edward J. Stone, author of Getting Started in Financial Consulting
and editor of The Journal of Corporate Accounting &
Finance. "Increasingly, customers want financial planners
who are certified. It demonstrates at least a minimum level of
competence."

Count your CFP courses as your first startup cost--though you
can't gain certification until you've passed the exam, have
three years of professional experience, and agree to abide by the
CFP Board's Code of Ethics and Practice Standards.

Beware: If numbers are attractive to you but you must always
stick to a formula, this field probably isn't for you.
"Some people are attracted to financial services because they
like being able to measure things, to come up with precise
numerical answers," says Stone. "But that's
definitely not what it feels like to be an independent financial
consultant. You have to be a creative problem-solver. There are no
formulas to follow."

In other words, you've got to be able to market your
services, keep your own business finances afloat, work comfortably
on your own and communicate with clients. "You can't apply
the technical tools of financial planning unless you also have good
listening skills and a reasonable amount of empathy," says
Yeske. "There is no one right answer when working through the
financial planning process with a client, but, instead, many
possible solutions."

Patriotic Products

After September 11, you saw them everywhere: Flags on car
antennae or attached to windows. Flags on lawns. Flags on shirts.
Many were given away in exchange for charity donations. But many,
many were sold at the local convenience store, the grocery store,
the department store--hopefully with a chunk of change still going
to charity.

While marketing patriotic products during a time of national
turmoil can be a risky venture, it can also turn out to be a
business opportunity that can nourish both your entrepreneurial
spirit and your conscience--if you go about it in the right way.
John Landrum and Bill Russell both work in the film industry, but
just days after September 11, they were struck with a thought that
changed both their lives: How can you show your patriotism while
also supporting the peace movement? Hours later, Peaceflags.org was
born.

But don't let the quick start fool you: The business
partners struggled to find flag manufacturers that would take a
chance on their small company and surprisingly controversial
product: an American flag with stars in the shape of a peace sign.
In fact, CNN pulled a segment on Peaceflags as a result of
advertiser pressure. "It's controversial in that the peace
movement is marginalized right now," says Landrum, who worked
with Russell to keep the flags completely U.S.-produced.
"Because we're providing the symbol of that [movement], we
definitely became the chew toy of that battle."

They also struggled to find a way to get the word out about
their product. They first focused on nonprofit organizations like
National Public Radio, but were shut out because Peaceflags.org
isn't nonprofit. (They explored the option, but Landrum says it
was a "bureaucratic nightmare.") With a scarce
advertising budget, they lucked out: Both Mother Jones and
The Nation offered online ad space for next to nothing, and
their ad got the highest click-through rate--4 percent--in history
on both sites. They've since received 3,000 orders and donated
one-third of proceeds to charity, and they plan to keep the
business alive in hopes of finding a nonprofit purchaser for
Peaceflags.org.

The moral of this story is, while the nation's attitude is
ripe for new patriotic products, it's not necessarily an easy
sell. Like any "hot" trend, getting started quick is
crucial--and getting started quick requires long, long hours. But
is it worth it when the trend will peter out? The current 50
million flag market (according to the National Flag
Foundation) will undoubtedly diminish over time, but 20 million
flags are still sold every year. So regardless where current events
are headed, customers will still be looking for flags come Flag Day
and Fourth of July.

Referral Service

People are busy. Very busy. And many don't have the time or
energy to scour the Yellow Pages and call around for price quotes
and credentials when looking for services like attorneys, child
care and home repair. So what do you do? Create a network of
suppliers, check their credentials, charge them a referral fee, and
open up shop.

Referral services are a brilliant way of capitalizing on
everyone's favorite marketing tactic: word-of-mouth. "My
husband and I had just purchased our first house and were
struggling to find reliable home-improvement contractors,"
says Debra M. Cohen, founder of Hewlett, New York-based Home Remedies of
NY Inc., a home maintenance referral agency with 220 licensees
nationwide. "When I finally found a responsible contractor, I
felt compelled to share his name with other homeowners in need of
his services."

One of the most famous referral services is 1-800-DENTIST, a
toll-free service where users can call and find recommended
dentists in their area. Other types of referral services include
attorney, elder care, child care, apartment and even sleepaway
camps.

"The balancing act in operating a referral business is,
you're providing a service to two separate groups of
people," says Cohen, who spends much of her day on the phone.
"[I] earn commission for any work secured from the contractors
I represent. At the same time, I select contracts carefully so as
to maintain a high standard of quality and service for the
homeowners who use my services. Ultimately, both groups need to be
satisfied."

Next Step

Need some inspiration for deciding on a referral business to
start? Check out some of our Startup Kits and guides:

Personal Trainer

Personal training isn't a lot of things: It isn't just
teaching aerobics. It isn't sweatin' to the oldies. What it
is is a field that requires a great deal of experience, education
and knowledge of the human body, how it works, how it hurts and how
you can help someone recover from injuries and/or get into the best
shape of their life.

Ayrn Singler studied sports medicine at Michigan State
University and has a host of letters behind her name that spell out
only one thing: how experienced she is. And those letters make all
the difference in her eponymous training business. "I
attribute my success to the fact that I do have a sports medicine
background and rehab-based knowledge," says Singler, who has
an office in her Fort Lauderdale, Florida, home and rents space in
a local studio for training sessions. "I know a lot more than
the normal personal trainer."

Singler suggests that anyone seriously interested in personal
training get a bachelor's degree in a health-related field like
exercise science or kinesiology. This is also a must if you want to
get certified by the National Strength & Conditioning Association
Certification Commission, the only nationally accredited
personal training certification--and one of the sources for all
those letters behind Singler's name.

Another helpful way to get a feel for the industry is to get a
job in it. "Find a job that gives you the chance to learn
without spending great amounts of money to get in the field,"
advises Mark Occhipinti, M.S., Ph.D., with American Fitness
Professionals & Associates, a membership association that
provides resources and training. "If you really enjoy the
work, then it is good to pursue further education and
training."

As for startup costs, they're minimal. Singler got started
for $4,000, which included office equipment and clothing for
sessions. She stresses the importance of image in an industry where
you often work with higher-end clientele. She has also saved money
by benefiting from the cheapest marketing method of
all--word-of-mouth--by letting her experience and skills speak for
themselves.

Next Step

Get your new personal-training business whipped into shape with
these books:

Tech Consulting

IT spending is down this year--it's true. But after
increasing year after year for the past decade, there's still a
huge market for tech consultants. IDC estimated that worldwide
corporate spending on online initiatives would reach $700 billion
in 2001, with U.S. companies spending $260 billion on web
infrastructure in 2000.

As far as choosing a specialty, let your imagination and your
skills determine that. Computer consultants can focus on software
development, network engineers, security, programming, web
designers...the list goes on and on. "People specialize
[within these areas] as well," explains Gloria Metrick, owner
of GeoMetrick
Enterprises, a Cincinnati-based computer consulting firm that
specializes in managing laboratory data, and board member of the
Independent Computer
Consultants Association. "For example, there are many
programming languages a consultant might specialize in. Another
twist is, some consultants specialize in a functional area or a
subset of a functional area. For example, I work with a specific
type of laboratory system known as LIMS (Laboratory Information
Management Systems), and I perform all tasks within the type of
system I work with."

To get started, you need a good amount of experience in the area
you're specializing in. Before striking out on her own, Metrick
had worked for a LIMS end-user and a LIMS vendor as well as
subcontracted at a LIMS consulting firm. "Consultants cannot
be 'run-of-the-mill' talent," says McLaurin.
"They usually need at least three years of practical
experience. [And,] unless they are in some really esoteric
technology, they need good soft skills, i.e., communications and
relational skills. More than 80 percent of consultants are asked
off of assignment because of nontechnical reasons."

Online Games

When Tina Louise Feldman, 27, and Alan Balode, 25, began
creating online games for Internet sites a few years ago, everyone
thought their idea sounded like a sure thing. Now, Feldman says,
when people hear that Ultimate Arcade Inc. develops games for
dotcoms, they say, "Oh, I'm so sorry.' But we're
doing great."

So is the online game industry as a whole. It's expected to
grow to $5.6 billion by 2005, according to market research firm
Jupiter Media Metrix. Feldman and Balode's Calabasas,
California-based company has seen business double in just the past
six months. Their clients are small (insurance companies, nursing
homes) and big (Disney, Levi Strauss and Warner Bros.).

Eventually, Feldman says, they'll branch out into doing
online games people will pay to download. But for now, they're
sticking to where the big money is: gaming sites offered by
businesses with something else to sell. "We're going to
see more and more companies [using] online games," says Glenn
Platt, professor of economics at Miami University in Oxford, Ohio,
and director of its Center for Interactive Media Studies.
"Companies want to give consumers a reason to come to their
site, to stay at their site and to come back to their site,"
says Platt. "And online games is the ideal medium for that, if
you've done a good job. [Games] create a sense of community,
and the users feel like they're part of a special club, which
can be valuable for any organization." Platt created an online
hockey game with his students a few years ago to help Procter &
Gamble promote its Febreze fabric freshener. P&G was trying to
improve its sales with college students, says Platt, adding,
"They figured college kids would have smelly clothes." To
gain the kind of following Ultimate Arcade enjoys, your games will
need to stand out. "With all the competition," says
Platt, "companies need to keep making these games better, more
interesting and more sophisticated." -Geoff
Williams

Maternity Clothes

Celebrity moms like Cindy Crawford and Kelly Ripa aren't the
only ones who know that muumuu-style maternity clothes are so last
century. Today, pregnant women are all about celebrating their
style and looking sexy. From high-end maternity designers like Liz
Lange and A Pea in the Pod to midpriced maternitywear newcomers The
Gap and Old Navy, clothing designers are on to the potential of
this growing market. With more than 4 million babies born annually,
it's easy to see why the maternity clothing market is
buzzing.

Peg Moline, editor in chief of Shape's Fit Pregnancy
magazine, has seen a boom in sexy and hip maternity clothing as
well as in athletic maternitywear. And with more pregnant women on
the job, maternitywear has to provide workplace comfort and style.
"[Clothes] have to be really comfortable, really sharp-looking
and also very hip," says Moline.

Enter LSR Maternity. Specializing in lingerie, LSR founder Laura
S. Rudolph describes her products as the "Victoria's
Secret of maternitywear." Founded in 1996, Aurora,
Colorado-based LSR was born out of Rudolph's frustration with
the dearth of sexy, well-made and affordable maternity fashions on
the market. Rudolph filled the void with lingerie the average woman
could afford. "It's not about income levels and social
status," says Rudolph, 36. "It's about who wants to
feel beautiful and sexy during pregnancy." Rudolph's
prices range from $48 to $84, and she plans to release a
lower-priced line through her online store and specialty boutiques
nationwide.

Need more proof this market is worth a look? LSR Maternity's
revenues have increased 300 percent over the past six months, and
Rudolph is projecting sales of up to half a million dollars in
2002. -Nichole L. Torres

Online Learning

You can teach an old concept new tricks. While many online
companies appear pale under the economic spotlight, e-learning
businesses are looking rosy. Employee training, internet college
courses and classes catering to the fresh legions of home-schoolers
are booming areas. IDC expects the corporate e-learning market
alone to top $18 billion by 2005, up from $2.3 billion in 2000.

Stephan Thieringer, 35-year-old CEO and co-founder of Danvers,
Massachusetts, business training company GTF Systems, is familiar
with what it takes to successfully launch a virtual education
company. "The market is huge," says Thieringer. "The
mistake a lot of companies make is, they get very broad-ranged. We
are very specialized." GTF Systems' focus on state- and
federal-mandated compliance training and human resources solutions
keeps it plenty busy in its niche market.

Thieringer explains one of the key factors poised to make 2002 a
good year for e-learning entrepreneurs: "The community has
come to the point where distance learning isn't necessarily
considered an inferior education." The arrival of accredited
online-only universities like Capella University of Minneapolis is proof
positive of this growing trend. Look for business opportunities not
only in providing courses and continuing education programs, but
also in servicing the peripheral supply and material needs of
distance learners.

While there is a high awareness of online college-level classes,
there are also interesting e-learning developments a little closer
to home. According to the National Home Education Research
Institute, 1.3 million to 1.7 million children were home-schooled
in 1999 and 2000. No exact figures are available for 2001, but the
home-schooling movement has gained significant steam during the
past few years, making K-12 education a hot area for entrepreneurs.
Fronted by William J. Bennett, former Secretary of Education under
former President Reagan, K12 in McLean, Virginia, has made a high-profile entry
into this area by offering curricula and supplies geared toward the
elementary market. But there is still plenty of room on the
chalkboard for small companies to make their mark.

Thieringer sees a wide landscape for e-learning startups, but he
emphasizes that the basics of customer service and specialization
are required for success. "It's about content," he
says. "It's about the scalability of the product. It's
about the bandwidth requirements. It's about ease of use."
Virtual learning entrepreneurs prepared to balance the knowledge
with the technology will move to the head of the class in 2002.
-Amanda C. Kooser

Next Step

Learn all you can about online learning before you get started.
Check out these books by Rena M. Palloff and Keith Pratt, college
instructors and experts in the field of developing online learning
communities:

Life Coach

Business coaches have been around for years, but today many are
morphing into life coaches. After all, life and business are
intertwined, and many people need help in both areas. Life coaches
generally charge between $300 and $500 a month for a weekly
30-minute phone call, in which they help their clients set goals
and motivate them to achieve those goals. Life coach Karen
Childress, 42, in Peterborough, New Hampshire, says,
"[Clients] tend to stay with coaching for a few months to a
few years; if it didn't work, the industry wouldn't be
growing."

And it's definitely growing. Bobette Reeder, president of
the International Coach Federation (ICF) in Washington, DC, notes
that when she received her coach training in 1995, there were
possibly two credible coaching colleges. Today, 42 recognized
schools offer coaching education and training, 10 of them
accredited by ICF. And ICF, which boasts 4,500 members, is growing
by some 200 members each month.

Childress says you can make more money if you recruit corporate
clients and offer additional services. For instance, in the past,
she offered clients her own brand of do-it-yourself life coaching
for cash-strapped clients. Members would pay $12.95 a month to set,
organize and monitor their goals online. Combining the dual
consumer demands of coaching and convenience is just one way
entrepreneurs can use their fertile imaginations to fuel
opportunity as a life coach. -Geoff Williams